Deduction of VAT on vehicles used by employees for personal purposes – Tax criteria explained

• The issue is about the deduction of VAT on vehicles used “mixed” by the company and provided to employees for personal use for free
• The taxpayer must prove the vehicle’s use for business activities to deduct VAT
• If proven, it is presumed that the vehicle is used 50% for business activities
• This criteria was reiterated in a resolution dated 18-10-2024 (R.G. 00-6250-2022)
• References to the VAT Law 37/1992

Source: serviciostelematicosext.hacienda.gob.es

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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